Bihar will join the highly subsidised crop insurance scheme jointly run by the Centre and state governments from the next rabi season (2026-27), sources said.
West Bengal has rolled out the scheme for farmers from the current kharif season. Currently, 25 states and Union Territories are implementing the Pradhan Mantri Fasal Bima Yojana (PMFBY).
Both Bihar and West Bengal are major producers of rice, wheat and maize crops, while several parts of these states are prone to adverse climatic conditions such as excessive rainfall, floods and prolonged dry spells.
Since its launch in kharif 2016, 27 states and Union Territories have implemented the scheme in several seasons. Bihar, Telangana, Andhra Pradesh, Jharkhand, West Bengal and Gujarat opted out of the scheme due to factors including financial constraints.
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Over the last one year, Andhra Pradesh, Jharkhand and West Bengal have rejoined the PMFBY. Gujarat currently implements its own Mukhyamantri Kisan Sahay Yojana, while Punjab has given in-principle approval for implementing PMFBY.
Farmers pay a fixed premium of 1.5% of the sum insured for rabi crops, 2% for kharif crops and 5% for cash crops. The premium subsidy is shared equally between the Centre and the state, except in the northeastern states, where it is shared in a 9:1 ratio between the Centre and states.
This voluntary scheme provides for comprehensive risk insurance against crop damage due to non-preventable natural risks from pre-sowing to post-harvest for the notified crops and areas. States and farmers subscribe to the scheme as per their risk perception.
According to the agriculture ministry, insurance companies have paid over Rs 86,731 crore to farmers under PMFBY as compensation for crop loss between FY22-FY26, against the total farmers’ total premium contribution of Rs 18,351 crore.
The Centre has incurred Rs 12,267 crore under PMFBY as per the revised estimate for FY26. As per the Budget Estimate, Rs 12,200 crore has been allocated for crop insurance for the current fiscal.
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Meanwhile, due to delayed monsoon arrival, enrolment under the crop insurance scheme has been extended to August 31, 2026 in several states, including West Bengal, Uttar Pradesh and Rajasthan.
To reduce delays in claim settlement, the ministry has made it mandatory for states to open escrow accounts for deposit of their premium share in advance from the 2025 kharif season .
The ministry has also made a provision of a 12% penalty on delay in payment of claims by insurance companies, which is automatically calculated on the national crop insurance portal.
TOPICSrabi seasonThis article was first uploaded on August eleven, twenty twenty-six, at thirty-seven minutes past ten in the night. © The Indian Express (P) Ltd